The United Kingdom is one of the most significant defence spenders in Europe and the wider world. BMIcalculates that the country will spend US$71.4bn on defence in 2014. This is a significant increase from theUS$65.9bn that the UK spent on defence in 2013. By 2018, we expect the UK to spend up to US$95bn ondefence.

As regards procurement and defence modernisation, in February 2014 the British Army completed thepreliminary design review for its Warrior infantry fighting vehicles. The British Army plans to upgrade all643 of its vehicles with a service entry for these upgraded platforms scheduled for 2018.As of January 2014, the RAF had received seven of its 14 A330-MRTT aircraft. A further two will bedelivered in 2014, taking the total fleet size to nine. Meanwhile, it was announced in January 2014 that theRAF has taken delivery of the first of three Boeing CH-47 Chinook heavylift helicopters from a totaleventual fleet size of 14 aircraft. Finally, the last of the Royal Navy's Type-45 'Daring' class air defencedestroyers HMS Duncan entered service with the fleet in late December 2014.

Key Findings •Infrared (IR) seeking technology has evolved to more capable systems that can differentiate between a flare and an aircraft. The use of flares is diminishing and are being replaced with ...